Acumentis has now acquired Acumentis SA, previously a franchisee of Acumentis WA. Image: Canva.
  • Upfront consideration in 75% cash and 25% ACU newly issued ACU shares
  • Cash portion to be paid 40% on settlement, with the balance in three instalments
  • Consideration is $950K plus working capital balance

ASX listed Acumentis Group Limited (ASX: ACU) recently announced it has agreed to acquire 100% of the South Australian franchisee Acumentis (SA) Pty Ltd.

ACU acquired the remainder of Acumentis (WA) Holdings Pty Ltd (57.8%) back in July 2021, to which Acumentis SA has been a franchisee and operated as a licensee of the then LMW Hegney brand from 2010.

The acquisition terminates the franchise arrangements and brings the ACU SA business and rights to trade in South Australia within the wholly owned Acumentis Group.

ACU said the transaction will add $1.4 million in annual revenues to the consolidated results and additional margin without increasing group overheads.

Among other transaction highlights, ACU said it:

  • Is expected to deliver an increase to EPS of circa 10%;
  • Allows for the expansion of ACU’s coverage within South Australia,
  • Creates a single entity delivering valuation and property advisory services throughout Australia.

The upfront consideration is $950,000 plus working capital balance, calculated as three times normalised annual profits before tax.

Acumentis said upfront consideration will be settled in 75% cash, and 25% newly issued Acumentis shares (at 16.23 cents per share, being the VWAP for 15 days ended 31 January 2022.

Forty per cent of the cash payment is payable on settlement, with the remainder spread across three equal instalments at six, twelve, and eighteen months after settlement.

The deferred consideration will be calculated as the lower of three times the average PBT for the financial years ended 30 June 2023, 2024, 2025 less the upfront consideration; and $950,000.

Acumentis SA

The company operated predominantly in the metropolitan areas of Adelaide and within the residential mortgage valuation business.

Following the acquisition, ACU said in a statement that the strategy is to expand both the geographical area serviced within South Australia and diversify the service offering to include commercial and agri-business valuation as well as property advisory services.

The transition seems like it will be smooth, ACU SA is already integrated with the wider Acumentis business and uses the same IT and valuation platforms.

Year ended  6 months to December 2021
Unaudited $000 Jun 2017 Jun 2018 Jun 2019 Jun 2020 Jun 2021
Revenue 905 995 1,094 1,142 1,427 843
Profit before tax 145 121 127 361 363 197

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